Aon restates client settlement figures

This story clarifies an item published on ChicagoBusiness.com on Dec. 19.

Aon Corp. has restated details about the extent of client participation in its $190 million compensation fund established as part of its contingent commission settlement.

Aon Corp. has restated details about the extent of client participation in its $190 million compensation fund established as part of its contingent commission settlement.

According to figures released Tuesday by the Chicago-based brokerage, 74% of the fund, which represents about $140 million, will be distributed to clients that have elected to participate in the settlement.

Last week, an Aon spokesman incorrectly informed Business Insurance that 70% of the 352,000 settlement offers it has made to clients had been accepted, with some clients receiving multiple offers. Aon will not say how many clients or what proportion of the offers were accepted overall, though it stated that 90% of its "top 1,000" clients accepted distribution from the fund.

Aon established a $190 million compensation fund in March as part of its agreement with officials in Connecticut, Illinois and New York to settle charges that it steered business to insurers paying the highest contingent commissions and that it linked insurance placements to reinsurance business.

The Aon settlement was made shortly after rival brokerage Marsh & McLennan Cos. Inc. settled client steering and bid-rigging charges with New York Attorney General Eliot Spitzer. MMC stated earlier this year that about half, or 70,000, of its eligible policyholders agreed to its settlement--including more than 90% of its largest clients--and that they would receive about $750 million of the $850 million compensation fund.